Oil Man Jim Company Oil & Gas Update’s 30th June 2019

Lots of news last week, some of it very interesting. Angus Energy (ANGS) started the week announcing its half-year results, stating “our unique advantage…is to maintain high standards of technical and regulatory expertise…so that we can acquire the maximum cash flow for shareholders with the lowest outlay of their risk capital.

ANGS ended the week announcing its Brockham well test results, stating “it is extremely unlikely that commercial hydrocarbon flow can be established.” Its share price more than halved to 1.425p. ANGS placed shares last November at 9p. Alba Mineral Resources (ALBA), a 5% owner of Brockham, reminded the market that at Horse Hill, in which it had a much greater stake, oil continued to flow steadily. Its shares held relatively steady, falling 11%.

The majority owner of Horse Hill, UK Oil and Gas (UKOG), also announced half-year results, confirming they “have started the civil construction works and a site layout reorganisation that will see the simultaneous drilling of the new Portland horizontal development well, HH-2/2z.” No firm date is being given for the rig arrival, other than this summer, presumably to ensure no advance notice is given to protestors to enable them to organise and block the roads.

A large seller seems to have been active recently in UKOG and their identity was revealed when Solo Oil (SOLO) announced its full-year results. Solo has sold the large majority of its shares in UKOG and is progressing towards its objective of selling down the entirety of its stock. SOLO finishing selling and the rig arriving should see the UKOG share price move sharply up.

Meanwhile, another UK onshore explorer, Union Jack Oil (UJO), raised £2.25 million from a placing at 0.17p per share, funding its share of upcoming expenses at West Newton. On that subject, a reader asked me where will Rathlin, the operator of West Newton, look for cash. Rathlin is owned 37.1% by Reabold Resources (RBD) and I understand their plan is to IPO the company, which would be quite feasible with a positive West Newton well test.

RBD also announced full-year results last week. Unfortunately, the long-awaited production numbers for Monroe Swell were not included.

Anglo African Oil & Gas (AAOG) announced its full-year results too. A shocking £11,830,789 loss for the year and the write off of the value of the TLP-101 and TLP-102 wells. At the time of the IPO, they claimed a 100% chance of success of achieving production of 250 bopd from TLP-101 and TLP-102, making the company immediately profitable. The door is now open for shareholders to recover their losses through legal action against the company, its directors and professional advisors.

Another reader question regarding Block Energy (BLOE) asking why is BLOE still silent. The reality here is that their much touted 1,000 bopd production from a single well, which sent the share price up from 2.5p to 17.5p and enabled a £12 million placing at 11p, is just a test result per their recent presentation (after the placing). They’re not totally silent though and issued an announcement last week changing their accounting reference date, with immediate effect, from 30 June to 31 December. Which means no audited production numbers now until the middle of next year.

READ
Weekly Oil and Gas Highlights, 9th November 2019

Providence Resources (PVR) announced annual results. The company remains confident that the loan advance and consents for Barryroe will be received shortly. Its partner in Barryroe, Lansdowne Oil & Gas (LOGP), also announced final results, plus a loan agreement for £300,000 at 12% since it is now short of cash and did not want to do an equity fundraising due to “the significant softening in our share price over the last few months.” San Leon Energy (SLE), owner of a 4.5% net profits interest in Barryroe, also had a busy week announcing final results, an update on the Sun Trust litigation, plus an Akaso-15 well test and OML 18 drilling update.

Petro Matad (MATD) announced an operational update. The company is on track to spud the Heron 1 during July. The Gazelle 1 well will follow immediately after Heron 1 operations, allowing for a short rig move. Red Deer 1 is expected to spud before the end of July using another rig. Question is will they try to place immediately before or during all this to top up the coffers. They have form.

Pantheon Resources (PANR) announced a “partnership” with eSeis (meaningless, anyone can do that) and this company continues to be one to avoid. 88 Energy (88E) announced a farm out update, short on detail and remains another avoid. Savannah Petroleum (SAVP) also updated. It’s still continuing to make progress on the Seven Energy transaction “workstreams” and the finalisation of documentation. This nonsense has being going on for around two years now and in the meantime, despite drilling success in Niger, the company’s shares have more than halved.

IGas (IGAS) and Egdon Resources (EDR) announced the Spring Roads-1 shale exploration well results, which confirm that a significant hydrocarbon resource is present in the Gainsborough Trough. IGAS also announced an Ellesmere Port appeal update. This has now been called in by the Secretary of State to determine himself since proposals for exploring and developing shale gas “amount to proposals for the development of major importance having more than local significance.” Good news for IGAS.

Rockhopper Exploration (RKH) also updated on the Ombrina Mare arbitration. Slowly it is bringing the Republic of Italy to account for refusing to award a production concession and a final outcome now is expected in Q1 2020. The monetary damage award is expected to be “very significant.” Another company with interests in Italy, Cabot Energy (CAB), announced an AGM statement. It’s still a rolling train wreck, constantly requiring finance, but if they do stabilise the situation, the current £2 million market capitalisation is going to look very cheap.

SDX Energy (SDX) announced an oil discovery at their Rabul-7 well in Egypt. Full-year 2019 production guidance remains a gross 4,000-4,200 bopd at West Gharib, but whatever positive announcements SDX keep releasing, their share price just keeps going down. President Energy (PPC) released an AGM statement maintaining a 2019 year-end production target of 4,900 boepd. Again, its share price continues to disappoint.

READ
Angus Energy PLC (LON:ANGS) Decommissioning Liabilities and Associated Funding

Victoria Oil & Gas (VOG) issued a pre-AGM trading update. Gas production remains consistent at around 10 million cubic feet per day and with payment guarantees now finalised, the share price is firming up.

LEKOIL (LEK) announced an updated Otakikpo CPR. It’s now looking for funding to increase production to a gross 15,000 to 20,000 bopd. Looking at its dire share price performance, though, investors appear to believe LEK will be unable to do that.

Among the smaller companies, Rose Petroleum (ROSE) announced both final results and a board appointment and update. Rick Grant has come in to join Colin Harrington and Matthew Idiens is leaving. The share price responded positively, rising 27% to 1.4p.

Mosman Oil & Gas (MSMN) announced an operations update and a Stanley project update. New wells are planned at Stanley and Champion.

ADM Energy (ADME) announced full year results. Moving forward, they aim to target investment opportunities, primarily in Africa.

Prospex Oil & Gas (PXOG) announced the spudding of the Bainet-2 well, but nothing really helps the share price of this one anymore.

Finally, Baron Oil (BOIL) issued its AGM statement. They’ve still got a lot going on with Colter and the adjacent onshore licences, the new licences awarded in the UK 31st offshore round and Block XXI in Peru. Expect a further fundraising and perhaps, with a new CEO, this time some promotion.

 

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The author holds one or more investments in one or more of the companies mentioned so this post cannot be viewed as independent research. This post does not constitute investment advice or a recommendation to buy or sell and may be incorrect or outdated.

 

Article originally published by Oilman Jim. Share Talk is not responsible for its content or accuracy and may not share the author’s views. News and research are not personal recommendations to deal. All investments can fall in value so you could get back less than you invest.

 

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